Skip to content

CS Professional · CSR and Social Governance · Guidelines on CSR

Himalaya Cements Ltd was required to spend Rs 1 crore on CSR in the current year but spent Rs 1.4 crore. Which statement is correct regarding the excess Rs 40 lakh?

The excess Rs 40 lakh may be set off against the CSR spending requirement of succeeding financial years, for such number of years and in such manner as prescribed, as the third proviso to section 135(5) permits.

  1. AIt is lost and cannot be used again
  2. BIt must be refunded to the Board as reserve
  3. CIt may be set off against the CSR requirement of succeeding financial years in the prescribed mannerCorrect
  4. DIt must be transferred to a Schedule VII Fund

Explanation

The third proviso to section 135(5) allows a company that spends more than required to set off the excess against the requirement for such number of succeeding years and in such manner as prescribed. It does not have to be transferred to a Fund or be forfeited.

Did you get it right without looking?

One question tells you little. A timed set on Guidelines on CSR shows your real accuracy, how long you take and where you lose marks.

Practise Guidelines on CSRFree diagnostic mock

More Guidelines on CSR questions